Q: The U.S. Treasury Department called on China to further appreciate the RMB and increase its flexibility in a semiannual exchange rate report on December 27. What is China's comment?

A: China adopts a managed floating exchange rate regime. Since the further reform of the RMB exchange rate regime in June last year, the flexibility of the RMB has been remarkably improved. Relevant measures lay emphasis on adjusting the exchange rate on the basis of market supply and demand with reference to a basket of currencies. As the reform unfolds, China's foreign trade becomes increasingly balanced and the share of trade surplus in GDP drops.

China will put into practice various macroeconomic policies that promote economic restructuring and transform development mode in an active and effective manner. We will also steadily advance reforms, the RMB exchange rate reform included so as to make it more flexible and strive to boost domestic demand in a bid to achieve basic equilibrium in our balance of international payments.

Q: DPRK supreme leader Kim Jong-il's farewell ceremony was held today and his memorial service will be held tomorrow. Did and will Chinese officials attend the above activities?

A: China and the DPRK are friendly neighbours. The Chinese side has expressed its deep condolences in various forms since the passing away of DPRK supreme leader Kim Jong-il. The CPC Central Committee, the Standing Committee of the NPC, the State Council and the Military Commission of the CPC Central Committee sent messages of condolences to the DPRK side. President Hu Jintao and other Chinese party and state leaders went to the DPRK Embassy in China to express sympathy.

Diplomatic envoys, military attachés and representatives of permanent institutions from different countries in the DPRK attended the farewell ceremony of DPRK supreme leader Kim Jong-il today in Pyongyang and will attend his memorial service tomorrow in accordance with the arrangement of the DPRK side. Chinese Ambassador to the DPRK attends the above mourning activities.

Q: Japanese Prime Minister Yoshihiko Noda is visiting India. What is China's comment?

A: Prime Minister Noda has just concluded his visit to China, during which leaders of both sides reached important consensus on promoting China-Japan strategic partnership of mutual benefit. As agreed by both sides, China and Japan should adhere to peaceful coexistence, lasting friendship, win-win cooperation and common development, which not only serves the fundamental interests of the two countries and two peoples, but also contributes to regional peace, stability and development.

China-India relations have also maintained sound momentum of development over recent years. We believe that China and India should deepen political mutual trust, expand economic cooperation and trade and enhance cooperation and coordination in international affairs.

China is willing to develop actively its bilateral relations with Japan and India. We stand ready to work with Japan and India to safeguard regional peace, stability and development.

Q: The ROK side recently drew up countermeasures against fishing irregularities by Chinese fishing boats, intending to raise the budget by a large margin, increase law enforcement ships and officers and allow their use of firearms. What is China's comment?

A: The Chinese Government always requires Chinese fishermen to operate in accordance with law. Competent authorities have already made great efforts in this regard and will continue to reinforce their management and education of Chinese fishermen. We hope that the ROK side will value and ensure the safety as well as the lawful rights and interests of Chinese fishermen in their law enforcement.